CHARLESBANK CAPITAL PARTNERS
MAKES ADD-ON ACQUISITION IN WEST TEXAS
FOR REGENCY GAS SERVICES

BOSTON, MA, April 5, 2004 – Charlesbank Capital Partners, LLC has invested an additional $10 million in Regency Gas Services to acquire the Waha gathering and processing assets from Duke Energy Field Services. The Waha assets, located near Midland, Texas, are the first add-on acquisition for Regency, which was formed in June 2003 by Charlesbank and Regency’s current management to purchase natural gas gathering, processing and pipeline assets from El Paso Corporation of Houston. In addition to the $10 million, Charlesbank and management raised approximately $50 million of senior debt, primarily from Wells Fargo and other existing lenders.

The Waha assets consist of approximately 630 miles of pipeline located in a prolific drilling area in the Delaware Basin of West Texas, as well as a cryogenic processing facility in Coyanosa, Texas. Like the original Regency assets, Waha’s cash flows are underpinned by an attractive set of contracts with high-quality natural gas producers.

Jon Biotti, vice president at Charlesbank, says, “Waha represents a valuable add-on opportunity for Regency, with stable contracts, a strong competitive position and newly refurbished assets. The talented Regency management team has specific operating experience in the Waha region, and we believe their expertise will help bolster the efficiency of the plant and the gathering assets.”

Charlesbank and Regency executives continue to explore further acquisition opportunities in the midstream sector.

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Regency, a mid-stream natural gas service company headquartered in Dallas, now has combined assets consisting of 2,900 miles of pipelines, 115,000 horsepower of compression and five gas processing plants with aggregate processing capacity of about 330 million cubic feet of gas. Total gas throughput for the company is now approximately 450 million cubic feet per day.

Charlesbank Capital Partners, LLC, is a private investment firm located in Boston and New York. Charlesbank Equity Fund V is a $590 million private equity fund focused on middle-market management-led buyouts and growth capital financings, typically investing $20 million to $75 million per transaction in companies with enterprise values of $50 million to $500 million. Charlesbank seeks to partner with strong management teams and other value-added investors to build companies with real competitive advantage and excellent prospects for growth. For more information on Charlesbank, visit www.charlesbank.com.